FINALS: Financial Management - Types of Budgeting

"In this world nothing can be said to be certain,

except death and taxes."

-Benjamin Franklin-

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Fund 

- sum of money or equivalent accumulated or reserved for a specific purpose. 

Budget

- forecast of expenditures necessary to perform the anticipated workload over a designated time period.

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1. Operating budget - deals with the process of planning for the laboratory as an ongoing business concern, accounting for everyday needs and expenditures.
2. Capital budget - development can occur simultaneously with operating budget . It is usually prepared at organization level and includes new or replacement properties, physical plants, and equip needs of company.
3. Cash budget - third type can develop with operating and capital budgets prepared. It is usually prepared by organization's finance department and predicts the cash firms in and out of organization and resultant cash availability.

Income - consumption opportunity gained by an entity with a specified time frame. It is generally expressed in monetary terms.

Expense - outflow of money to another person or group to pay for an item or service for a category of costs.

Personnel costs - invariably constitutes the largest expenditure of hospital laboratory. It is required to pay the salaries and wages of the staff employed by the laboratory.

Overhead costs - necessarily arbitrary to share of costs which arise because the section does not, and cannot, exist in the isolation.